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Company

Total questions: 22

Worksheet time: 9mins

Name
Class
Date
1.

A company can buy property in its own name. Which feature does this imply?

a)

Separate legal entity

b)

Artificial person

c)

Perpetual succession

d)

Liability

2.

One of the below mentioned is not a feature of a company. Identify it

a)

Risk bearing

b)

Common seal

c)

Separate legal entity

d)

Professional management

3.

Companies are governed under which act?

a)

Companies Act, 2012

b)

Companies Act, 2013

c)

Companies Act, 2014

d)

Companies Act, 2015

4.

Which feature implies that a company created by law can be closed only by law.

a)

Separate legal entity

b)

Limited liability

c)

Perpetual succession

d)

Common seal

5.

A is a shareholder in a company holding 2,000 shares of Rs.10 each on which he has already paid Rs. 7 per share. His liability in the event of losses or company’s failure to pay debts will be

a)

Rs. 7000

b)

Rs. 6000

c)

Rs. 20,000

d)

Rs. 3000

6.

Tick all the merits of company

a)

Limited liability

b)

Risk bearing

c)

Scope for expansion

d)

Transfer of interest

7.

Maximum number of members in a private company is

a)

Unlimited

b)

50

c)

100

d)

200

8.

Minimum number of members required to start a public company

a)

2

b)

4

c)

6

d)

7

9.

How many minimum directors are required to start a public company?

a)

2

b)

3

c)

1

d)

4

10.

Which is the first stage in the formation of a company?

a)

Promotion stage

b)

Incorporation

c)

Subscription of capital

11.

A promoter has to check availability of raw materials through this feasibility report. Identify it

a)

Financial

b)

Technical

c)

Economic

d)

Social

12.

A promoter can check if his idea will earn good profit or not through this feasibility report. Identify it.

a)

Financial

b)

Technical

c)

Economic

d)

Social

13.

How many names should a company give to the registrar of companies for approval?

a)

1

b)

2

c)

3

d)

4

14.

To act as directors, a person needs to take up ..................shares

a)

Initial

b)

First

c)

No need to take up any shares

d)

Qualification

15.

Which is the most important document of a company?

a)

Memorandum of association

b)

Articles of association

c)

Certificate of Incorporation

d)

Certificate of commencement of business

16.

Which is the most important clause in Memorandum of Association?

a)

Registered office clause

b)

Name clause

c)

Objects clause

d)

Capital clause

17.

How many clauses are there in Memorandum of Association?

a)

4

b)

5

c)

6

d)

7

18.

Tick all the clauses of Memorandum of Association

a)

Name clause

b)

Registered office clause

c)

Objects clause

d)

Liability clause

19.

Which is called the birth certificate of a company

a)

Certificate of business

b)

Certificate of commencement of business

c)

Certificate of corporation

d)

Certificate of incorporation

20.

A private company can start business once it receives the Certificate of Incorporation

a)

True

b)

False

c)

Maybe

21.

As per SEBI guidelines, the minimum subscription received should be ........... % of the issue size

a)

80

b)

85

c)

90

d)

95

22.

Return of allotment signed by a director is filed with registrar within .......days of allotment

a)

25

b)

30

c)

45

d)

60